Despite catering to the needs of nearly one billion people worldwide, cooperatives have failed to elicit matching response from the governments, said Dr Dinesh, Chief Executive of National Cooperative Union of India.

Dr Dinesh was, however, unsatisfied with the over-all performance of the cooperatives in India. Our International year of Cooperative pledge reads;“Cooperative enterprises build better world”. But how could we keep this pledge without professionalizing the cooperative team?

The relation of cooperative members to the cooperatives operating in Indian villages is restricted to getting a sack or two of fertilizers, seeds or other such requirements. He is not involved in its operations. There is no professional way of doing business, he lamented.

Unless the PACS become a whole game that survive on their own and conduct business through professional expertise, the slogan “cooperative builds better world” would sound hollow, he said in a frank chat with Indian Cooperative.

Mentioning America as an example, Dr Dinesh said 97 percent of the US’s energy needs are met through cooperatives. In Singapore majority of fair price shops are run through cooperatives, he added.

He felt that the government of India is ignoring the role of cooperatives for economic growth of the country. The absence of word “cooperative” in the five year plans for two consecutive terms comes as a shock to him.

If nuclear power could be generated by government and salt by TATAs why not allow cooperatives in the agricultural field where it is already doing 50 percent of the business, Dr Dinesh asked.

Over a judicious use of Education Fund, National Cooperative Union of India (NCUI) and the largest farmers’ cooperative IFFCO are once again at loggerheads. The Education Fund Committee that met sometime back diverted a sum of Rs 2 crore for the purpose of renovating the auditorium which hosts most of cooperative as well as non-cooperative functions.

IFFCO dissented and said that cooperative education fund, as the name shows, should be used for education and training and not for any other purpose, no matter how important.

Talking to Indiancooperative.com, Dr G N Saxena, Director of cooperative Development at Iffco animatedly argued that two proposals were before the Committee- one of starting the printing press lying in a shambles for some time and second, of renovating the auditorium.

While the first proposal was rejected outright, the second was discussed threadbare. I, being a member of the Committee objected to the idea of diverting a sum from Education Fund. Mr R K Tiwary, Central Registrar is also believed to have opposed the idea.

But Financial Advisor Mr Agnihotri, one of the two government nominees other than the Central Registrar is said to have supported the idea of diverting money to renovation.

Talking to the Indiancooperative.com Dr Dinesh, Chief Executive and DG of NCCT defended the decision of Committee and said that the auditorium is very much a part of education and training and given its bad condition, something needed to be done urgently. The air conditioners, chairs and other facilities cry for immediate attention, he added.

But Dr Saxena differed. “The auditorium is given on lease to a private party and it is using it for commercial purposes. How can the Education Fund which is being contributed by farmers in a way, be diverted for commercial gains of a third party”, he asked?

In the seven member Education Committee, NCUI has a majority and could get its agenda passed. The members from NCUI are President, DG of NCCT and head of Vaikunth Mehta, say insiders.

There are two members from Multi State Cooperative Societies and they are Iffco and Saraswat Bank. Due to medical problems, Saraswat Bank Chairman Eknath Thakur could not make it to the meeting.

There are two government nominees-the Central Registrar and the Financial Advisor. With the government nominees more often than not being absent, it is cakewalk for NCUI, said a source. However, both the govt nominees were present in the last meeting. These are quarterly meetings.

A cash-starved NCUI has more than Rs 330 crore lying in the Education Fund and the issue of diversion of fund keeps cropping once in a while.

The 17^th Vaikunthbhai Mehta Lecture of National Cooperative Union of India, which was scheduled for Wednesday on 19^th September, has been postponed.

Talking to the Indian Cooperative NCUI Chief executive Dr Dinesh said that new date would be soon announced.

Renowned agriculture scientist and Rajya Sabha member M S Swaminathan had consented to be the  main speaker in this year’s Lecture .

NCUI press release said “Due to sudden illness of Chief Guest, the memorial lecture is postponed. The next date and time will be communicated to you shortly”.

People associated with NCUI were thrilled to have the famous scientist as the chief guest. Last year NCUI had succeeded in roping in NABARD Chairman Prakash Bakshi as the chief guest.

Mohan Mishra, the Publicity Director in NCUI and a person who is well-known in Delhi’s media circles has landed the much coveted post of the NCCT Chief.

The post had been lying vacant for a long time after its former head T Paramjyoti was found involved in the Lecturers‘ scam. The incident robbed NCUI of much of its sheen.

Two candidates were short-listed among the applicants and Mr Mishra, who studied at Delhi School of Economics, was finally selected.
Mr Mishra has vast experiences of cooperatives in general and NCUI in particular. People close to NCUI say it was Mohan Mishra who used to write speeches for cooperative leaders in the town and keep them informed of the latest in the cooperative sector.

Leaders would come to him to collect their speeches before embarking on journeys to attend international cooperative conferences.

Though the letter to relieve Mr Mishra has been received by NCUI, it is in quandary on the issue. There seems to be no replacement for him in the media cell at NCUI.

The decision is still more difficult as NCUI is caught in the throes of activities including Vaikunthlal Mehta Memorial Lecture, East Zone Cooperative conference in Bhuvneshwar and International Cooperative Congress on the occasion of IYC 2012.

On behalf of the Indian Cooperative Movement we were shocked to learn about the sudden demise of Dr. Verghese Kurien, the father of White Revolution, who transformed the India from a milk deficient country into one of the biggest milk producer in the world.

`Under his able leadership “Anand” became the milk capital of the country. His biggest contribution was to unite the millions of women and farmers in the dairy cooperative sector and create a household brand popularly known as AMUL and gave strong foundation to Gujarat Cooperative Milk and Marketing Federation, National Dairy Development Board and IRMA etc.

Dr. Kurien provided strong dynamism to the cooperative sector and effectively lobbied for providing a fair representation to the cooperatives at various world forums. With death of such a towering cooperative leader, a big void has been created in the Indian Cooperative Movement.

Dr. Kurien was a father figure of the entire cooperative movement of India with great vision and professional approach. He always emphasized on cooperative generating their own resources so that they may develop their own independent identity. We all cherish the fond memories of the association we had with him.

We convey our deepest condolences to his family members and pray to God to give them strength to bear this irreparable loss.

May his departed soul rest in peace.

–Chandra Pal Singh, President, NCUI

Harnessing the “Cooperative Advantage to Build a Better World” was the theme of a workshop organized by United Nations Department of Economic and Social Affairs Division for Social Policy and Development recently in Ethiopia.

The workshop was attended by three illustrious cooperative personalities from India- Dr Dinesh, Chief Executive of NCUI, Dr G N Saxena, Director Cooperative Development at Iffco, and Lalita
Krishnaswamy from SEWA.

Dr Dinesh was acting as an expert while Mrs Krishnaswamy presented her views on how to create and maintain a successful cooperative. SEWA is indeed a living example of this.

Dr Saxena who lectured three times during the two-day conference told Indian Cooperative that what cooperatives could do for local area development, corporates cannot even dream of. The cooperative model is usually small and involves the participation of local people. The local populace constitutes its market. Thus you have a system which is self-contained and self-sustaining, Saxena added.

Dr Saxena expounded at length the difference between Corporate and Cooperative and cited the factors such as outward flow of fund, invasion of local climate and selfishness in the case of corporates.

The workshop was excellent and we remained pushed into the seminar-hall without any break till evening. There was no sight-seeing and it was business and business alone, remarked Dr Dinesh, Chief Executive of NCUI. “We need to inculcate UN culture in our country where seminars and workshops often degenerate into casual exercises”, he lamented.

It gladdens us to see Indian Cooperative emerging as platform for clash of ideas. Indian Cooperative piece “Constitution Amendment: NCUI wakes up” has attracted thought-provoking reactions from two persons- Shri I C Naik and Shri Meghavath. We present below their dialogue for readers benefit since the issue pertains to adoption of Constitutional amendment by the states

Ishwer Naik :

It is unfortunate that half of the time provided for the States to incorporate amended Constitutional provisions has elapsed without visible progress. There is a definite area of confusion in case of Maharashtra Housing Societies as the tenure of the Board for older societies (registered prior to the year 2000) it is three years and for rest 5 years. The reason is the tenure is fixed under the Bye Laws and the Act and Rules are silent. The State Government has to include provision of the Board’s tenure in the Act itself as soon as possible,

Meghavath :

Consequent to the Constitutional amendment in my opinion, the cooperative federations and unions will not be coming under the ambit of Cooperative legislation. These institutions cannot have member economic participation which is one of the Constitutional features of a cooperative society. Initially, the NCUI itself should be prepared to get registered under general societies/associations registration act.

Ishwer Naik

The wide spread allegations of interference of the “State” can be suitably addressed by empowering Cooperative Bodies like District Cooperative Federations, State level Federations, Central Federations with a liberty to become its members as the Primary Society may decide.

If any Society does not become member Registrar plays the role which such federations would have played. It could be a good idea to keep State interference to a minimum by such federations taking up Arbitrator’s Role within Cooperative Principles. So a fresh look should be given under each State Law to deemphasize the importance of role of the State Registrar and his hierarchy in the management of Cooperatives Constitutional Spirit is also that. It is moving towards higher level of self- rule by Cooperative Sector.

Meghavath

In order to continue the federal cooperative bodies, the RCS office should be a State Level Cooperative Society as defined under 243ZH (h) and the RCS should play the role of Chief Executive of that society. The RCS Society may have branches at sub levels. The RCS society should have constitutional wings such as Election, Audit, Training and Offenses & Penalties apart from Incorporation, Regulation & Winding-up. Except RCS the entire establishment should be appointed by the RCS society.

Ishwer Naik :

State Level Apex Society for every Sector (say Housing, Bank,Agriculture,Credit etc) should take over substantial role which is currently played by Registrar (including the whole Hirearchy up to district and ward level) National Federation of each Sector must play Role at National and International level reducing the Role of Union Ministry ( or expanding ).

Meghavath :

Reiterating my earlier comment, only those federal societies which have the Constitutional features like Voluntary formation, Democratic member control, Member economic participation, Autonomous functioning and Professional management can be continued under the cooperative legislation and those federal societies which are lacking above features can be continued under the non- cooperative legislation.

Any contravention for political or bureaucratic benefits shall not sustain in the court of law. Further, a separate election body is necessary as nomination of members to the vacant position in the board of a cooperative society is allowed only when the remaining period of such board is less than two and half years. It should be construed that such vacant position in case of remaining period of the board is more than two and half years, the interim election is imminent.

A high powered team comprising of President of National Cooperative Union of India (NCUI) and Chief Executive met Union Agricultural Minister Sharad Pawar on Thursday to solicit his help on a host of issues including holding seminar for popularization of Constitution amendment bill that enshrines right to form a cooperative into the list of Fundamental Rights.

Talking to Indian Cooperative NCUI Chief Executive said “We met Sharad Pawarji and sought his gracious presence on the occasion of national seminar for implementation of historic amendments in the states. He was kind enough to accept our invitation”.

The seminar has been scheduled for October 12 in N Delhi and participants from states have been invited.

“We are going to invite State cooperative Ministers, Registrars of cooperatives of states, Chairmen and Managing Directors of cooperative bodies. The idea is to give impetus to necessary changes in State’s laws so that the provisions of cooperative amendment act, 2009 are implemented in the states sooner than later”, said Dr Dinesh.

The Constitution (111th) Bill, 2009 also accorded right to set up a specialised agency on the lines of the Election Commission which can conduct elections of the cooperative societies.

If implemented faithfully the bill would usher in an era of professionalization and democratization thereby strengthening the cooperative movement. But state governments have not shown any interest even after the passage of the historic bill more than six months back.

The important provisions of bill include (1) Right to form cooperatives is a fundamental right(2) Cooperatives could set up agencies which would oversee elections (3) Uniformity in the tenure of Cooperative Board of Directors and (4) provisions for incorporation, regulation and winding up of co-operative societies based on the principles of democratic member-control, member-economic participation and autonomous functioning.

There are many states notable among them being Tamil Nadu and Maharashtra where elections in cooperatives have not been held for years. There are cases as in Uttar Pradesh and Odisha where the new political regimes sack the elected boards to suit their expediency.

Cooperators have been demanding constitution of a task force by NCUI to oversee the adoption of the amendment bill by the states. NCUI is alive to its job now!

The President of NCUI Dr Chandra Pal Singh met Union Agriculture Minister to solicit his cooperation in seeking appointment with Prime Minister Manmohan Singh for the inauguration of the Cooperative Congress.

The apex cooperative organization is holding the International Cooperative Congress later this year, Dr Chandra Pal told Indian Cooperative. “We wish to ensure Prime Minister’s presence as this happens to be the International year of cooperatives”, Chandra Pal noted.

Enlisting the support of Prime Minister would help the cooperative leaders focus on issues vexing cooperatives for a long time, said the President.

Income tax is one such issue which if not resolved in time would threaten the very existence of the cooperative movement in the country, he added.

Chandra Pal said that the other issue pertains to the cooperative banks. No new urban cooperative banks have come up as the government has put embargo on licencing of the UCBs. There are many credit societies and groups of individuals who want to float urban cooperative banks but the government is out of sync with times and consequently the movement is suffering, he added.

It may be mentioned here that the Malegam Committee constituted to formulate the licensing norms has already submitted its report but the government is yet to clear it. There is also the issue of a two layered control of the Urban Cooperative Banks being resisted by a section of the UCBs.

But more importantly, the frequent governmental interferences have compromised the cooperatives. People-centric movement might need governmental support in the beginning but frequent governmental diktats rob it of legitimacy and a leadership-crisis ensues, he asserted.

Through the cooperative congress we wish to draw the Prime Minister’s attention to such pressing cooperative issues, Chandra Pal remarked.

The declining GDP and depressing economic indicators have taken a toll on the cooperative movement of India. After a long and arduous bargain with the government, National Cooperative Union of India (NCUI) did get some fund but not enough to make it worry-free.

The Ministry letter reaching the NCUI lays emphasis on resource-generation on the part of the apex cooperative organization. It exhorts the NCUI to stand on its feet and generate its own fund.

Talking to Indian Cooperative, the NCUI Chief Executive Dr Dinesh said “I am leaving for Hyderabad soon to meet our ICMs and deliberate on the possibilities of generating fund”.

Dr Dinesh informed that he would be visiting most of the areas where the ICMs are located and field projects are running to see how we could be self-reliant.

When Indian Cooperative contacted President of the NCUI Dr Chandra Pal Singh Yadav he said we are meeting Union Minister Sharad Pawar on Friday to impress on him the necessity of the governmental support for the NCUI at this stage.

The government asks us to use corpus fund. We got a study conducted by IRMA, the prestigious body of Rural Management and it concluded we should not touch the corpus fund at this stage.

Some years ago a corpus fund of Rs 100 crore was created that included contributions from both the government and the NCUI. The amount has grown to Rs 330 crore. The IRMA Study revealed that it is safe to use this corpus fund once the amount gets as high as Rs 500 crore, said Chandra Pal.

“We request the government either to support us till the amount grows to Rs 500 crore or donate us another Rs 150 crore to take this amount to a magical figure of Rs 500 crore. We would not bother the government after that”, President asserted.

Agriculture Ministry, in its letter on fund release says that the NCUI has to support NCCT fully.

The ministry conceded only 50 percent of the Field Projects’ expenditure from its coffer too.

The government has directed the NCUI to make up the remaining amount partly from the corpus fund and partly from the resources the NCUI could generate itself.

“The amount we pay to those involved in the projects is so measly that keeping them motivated is a big challenge for us’, said Dr Dinesh.

Earlier, President of the NCUI gave up administrative and financial powers to meet the ministry’s pre-condition for releasing the fund.